Late last week, it was reported that Grab’s bid for foodpanda’s Southeast Asian business had fallen through, with the talks having collapsed due to issues concerning pricing. However, German multi-national online food ordering and food delivery company Delivery Hero, which owns the foodpanda brand, denies that discussions had collapsed.
“There are market rumours that the negotiations for the potential sale have collapsed. We confirm that the negotiations for the potential sale are ongoing,” Delivery Hero said via a statement.
Last September, Delivery Hero said it was in negotiations to sell the foodpanda brand in Singapore, Malaysia, Philippines, Thailand, Cambodia, Myanmar and Laos. Malaysia, Philippines and Thailand. While the Asia business is Delivery Hero’s largest market, growth has dropped since pandemic lockdowns eased, and the company was said to be looking to focus on profitability following years of heavy investment.
At that point, it did not disclose the potential suitor, but German business magazine Wirtschaftswoche indicated that Grab, which previously took over Uber’s ASEAN operations, could pay a little more than one billion euros (RM5 billion) for the foodpanda ASEAN unit.
Later in November, Bloomberg reported that China’s Meituan was exploring a potential acquisition of foodpanda in these markets, and had held talks with Delivery Hero regarding the matter.
News of the potential acquisition of foodpanda by Grab raised concerns that the Singapore-based company would create a monopoly in the p-hailing (delivery of food, drinks and parcels) segment. However, analysts have said that anti-trust approval will be the largest hurdle for Grab’s potential acquisition of the business
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If this succeeds, it will clearly create a clear monopoly by Grab on food delivery app and service.
This should not happen.
Malaysia/ASEAN needs an anti-monopoly law like europe or western countries.
European Union competition law
In the European Union, competition law promotes the maintenance of competition within the European Single Market by regulating anti-competitive conduct by companies to ensure that they do not create cartels and monopolies that would damage the interests of society.
Youths disappointed n fedap wiv PN PAS alr started MISI delivery…
MISI is a small fry compared to the possible GRAB+FOODPANDA merged entity.
These kind of mergers should not be allowed at all. Competition is good for everyone, but maybe not for shareholders. With competition, the provider strives to deliver more value. With monopoly, everyone know what happens after that. Complacency and high prices.